DBS (D05.SG) +1.6% at $14.84, outperforming other 2 Singapore banks, following lender’s $1.7 billion preference share sale, says Dow Jones.

Shares offer annual fixed dividend rate of 4.7% over 10 years, with proceeds to be used for refinancing existing preference shares redeemable in 2011.

As existing preference shares offer dividend rates of 5.35%-7.66%, replacing high dividend preference shares with lower dividend preference shares “is positive from an earnings perspective,” says Royal Bank of Scotland; but keeps Sell call, $11.50 target on caution over bank’s outlook.

DBS says MAS’s tightening of monetary policy “clearly signals that Sibor won’t rise any time soon”, which means net interet margins expected to remain under pressure.

Resistance eyed at $14.94 July peak. OCBC (O39.SG) +0.4% at $9.18, UOB (U11.SG) +0.5% at $18.88.